"Ford Options" Mach-E Lease vs standard lease - similarities and differences

GoGoGadgetMachE

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My last 3 Fusions have all had 0% financing, so actually having to pay points kinda sucks. I'm holding out hope that there will be a 0% option by the time my car is ready (9/23/20 order date and no scheduled production yet).
at the risk of sounding like a spoiled child, I'm also disappointed that 0% isn't on the table, especially given the current market situation with interest rates.

but that said, 0.9%/1.9% aren't exactly terrible. I remember as a child seeing ads proudly talking about "low rate" car loans at 12% rates because of the inflation at the time. (cf. See Interest Rates Over the Last 100 Years | GOBankingRates , Consumer Credit Outstanding and Finance Rates, 1980 to 2000 (infoplease.com) )
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AndyS_OSU

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at the risk of sounding like a spoiled child, I'm also disappointed that 0% isn't on the table, especially given the current market situation with interest rates.

but that said, 0.9%/1.9% aren't exactly terrible. I remember as a child seeing ads proudly talking about "low rate" car loans at 12% rates because of the inflation at the time. (cf. See Interest Rates Over the Last 100 Years | GOBankingRates , Consumer Credit Outstanding and Finance Rates, 1980 to 2000 (infoplease.com) )
I think the purchase rates are okay at best considering the tax credit. But since there are added steps to take advantage of that credit and possible loss of state level credits and rebates with the delivery delay, it becomes less attractive. The options and particularly the lease rates/incentives are hot garbage compared to the rest of the market. That’s my spoiled child rant for today. Tune in tomorrow for my encore performance.
 

DBC

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The options and particularly the lease rates/incentives are hot garbage compared to the rest of the market
I don't understand where this idea of "hot garbage" comes from. (Actually I have an idea so maybe I'm wondering why anyone falls for it). First you have to define the "rest of the market". Not sure exactly what that is. If it's any electric then there are much better deals. You can lease a Chevy Bolt for $175/month with $0 down. That's because GM is tossing a ton of incentives on the hood, something which isn't going to happen with the MME (because Ford can sell the MME without doing that).

Once you move beyond the smaller Econo offerings and into the luxury/performance class the MME is something of the class bargain. The Model Y, even with a lower trim level, has higher monthly payments (once you include the tax credit, which may take an additional step but gets you the money faster). Ditto for the Audi e-tron or the Jaguar I-pace. Sort of the same story for leasing though Tesla does offer a closed ended lease at a discounted rate. So if you're willing to take a lower trim level you can save a very modest amount per month at the cost of losing the buy out option. That might or might not be a preferred option, depending on a number of factors, but not what can be described as a "no brainer".
 

AndyS_OSU

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I don't understand where this idea of "hot garbage" comes from. (Actually I have an idea so maybe I'm wondering why anyone falls for it). First you have to define the "rest of the market". Not sure exactly what that is. If it's any electric then there are much better deals. You can lease a Chevy Bolt for $175/month with $0 down. That's because GM is tossing a ton of incentives on the hood, something which isn't going to happen with the MME (because Ford can sell the MME without doing that).

Once you move beyond the smaller Econo offerings and into the luxury/performance class the MME is something of the class bargain. The Model Y, even with a lower trim level, has higher monthly payments (once you include the tax credit, which may take an additional step but gets you the money faster). Ditto for the Audi e-tron or the Jaguar I-pace. Sort of the same story for leasing though Tesla does offer a closed ended lease at a discounted rate. So if you're willing to take a lower trim level you can save a very modest amount per month at the cost of losing the buy out option. That might or might not be a preferred option, depending on a number of factors, but not what can be described as a "no brainer".
I have no intention of debating a brick wall like some others.

I’m only speaking from experience of leasing two other BEV’s very similarly priced to the Premium MME I have reserved ($44k for the BMW i3, $43k for the Chevy BoltEV Premier, $47k for the MachE). Compared to those leases, the MME lease program is less than consumer friendly (BoltEV leased three years ago after taxes for $425/mo. MME lease currently comes in at $840/mo after taxes).
 

DBC

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Didn't know they will provide that level of details. I normally just pay cash but so much other expenses want to finance it. 0.9% is much better than the banks. And if Ford Option is lower with the incentive, may consider that also. Just want to be prepared and not get caught off guard by the slimy car dealership closer finance guy.
If your financing options are the same as where I am, which I think would be the case, Options is a better alternative than purchasing. Lower interest rate, a $2500 incentive, and the right to walk if you don't like it at 36 months.

With respect to the stop at financing, I don't think the finance department messes with the numbers as much as they try to sell you insurance products. Dent protection, windshield protection, etc. etc. I don't buy these but some people might.

Best case I'll be clear headed and will bring my eyeglasses and read the forms... Use the calculator on my phone or pencil and paper, and will decide accordingly. :)
I always get the financing options before I show up. I've just always asked for the details to be sent via email and that hasn't ever been an issue. That way all I need do is confirm rather than compute!

If I have a car but not a buyer or donee, the other step is to stop at CarMax a couple of days in advance and get an offer. Makes it easy to evaluate the dealer's offer.
 


AndyS_OSU

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If your financing options are the same as where I am, which I think would be the case, Options is a better alternative than purchasing. Lower interest rate, a $2500 incentive, and the right to walk if you don't like it at 36 months.

With respect to the stop at financing, I don't think the finance department messes with the numbers as much as they try to sell you insurance products. Dent protection, windshield protection, etc. etc. I don't buy these but some people might.

I always get the financing options before I show up. I've just always asked for the details to be sent via email and that hasn't ever been an issue. That way all I need do is confirm rather than compute!

If I have a car but not a buyer or donee, the other step is to stop at CarMax a couple of days in advance and get an offer. Makes it easy to evaluate the dealer's offer.
There are no incentives here in TX. So with that said, here a MME on the options payment would be $757/mo AFTER factoring in the $7500 federal tax credit. That’s $325 per month more expensive than my BoltEV lease. Over 36mos that is $11700 difference for a car that only costs $4000 more.
 

kdryden99

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Agreed. I could maybe see owning the MME for 6 years. I’m not sure EV tech will progress too far in that amount of time. As long as you’re comfortable with the MME being virtually worthless at the end of that time frame and having 0 equity, you’d be okay. For me that would basically be like 2 lease terms. I’m kind of considering it only because I want this car so badly.
I understand many peoples cringe at a 7 year finance. Most of them are open so you can put more down and end quicker it's more about money management then it is about term for me. Being self employed if I can't lease at a reasonable price I might consider finance because I do want the car but because my revenue fluctuates quite a bit form month to month (hence why I am no not going bi-weekly) It's easier to manage with lower base payments so that the months where I am extremely busy I can give that extra amount, especially with 2 young kids unexpected things can happen.
 

eastern refugee

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I understand many peoples cringe at a 7 year finance. Most of them are open so you can put more down and end quicker it's more about money management then it is about term for me. Being self employed if I can't lease at a reasonable price I might consider finance because I do want the car but because my revenue fluctuates quite a bit form month to month (hence why I am no not going bi-weekly) It's easier to manage with lower base payments so that the months where I am extremely busy I can give that extra amount, especially with 2 young kids unexpected things can happen.
BINGO. that is EXACTLY my situation. Term is irrelevant. Cost per month is everything. I do not plan on replacing the car. My idea was to buy what I wanted an FE and eventually not have a car payment. It has everything that I care about especially the OTA. Like a subscription rate which is fine but it also means that I don’t have to replace it.
 

DBC

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I’m only speaking from experience of leasing two other BEV’s very similarly priced to the Premium MME I have reserved ($44k for the BMW i3, $43k for the Chevy BoltEV Premier, $47k for the MachE). Compared to those leases, the MME lease program is less than consumer friendly (BoltEV leased three years ago after taxes for $425/mo. MME lease currently comes in at $840/mo after taxes).
You leased a Bolt for $425/month and some unknown amount down. I leased a Bolt Premium with the DC fast charging option for $275/month with $0 down. Does this make you an idiot who can't car shop? No. Of course not. The reason I got a much "better" deal is that when you leased the Bolt the MSRP bore some resemblance to reality whereas when I leased the Bolt its MSRP was a fiction. Notationally it had an MSRP of $43-$44K but GM put something like $12K of discounts and incentives on the hood, which essentially means it reduced the MSRP by that much.

Ford is definitely not putting cash on the hood of the MME at the moment. Yes the MSRP will definitely be reduced (actually or effectively) when the credits run out, and yes something will likely happen a few years into its model life cycle as supply exceeds demand. However, that will be then and this is now. In the "now" there isn't going to be a reduction in MSRP or cash incentives on a car that Ford can sell without lowering MSRP or giving incentives. Timing is everything, and there is a price to be paid for getting a hot new model.

Basically you're defining "hot garbage" financing as financing on a "hot car" but these are not the same thing.
 

trutolife27

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There are no incentives here in TX. So with that said, here a MME on the options payment would be $757/mo AFTER factoring in the $7500 federal tax credit. That’s $325 per month more expensive than my BoltEV lease. Over 36mos that is $11700 difference for a car that only costs $4000 more.
all vehicles come in different. Some don't sell quickly some do. The mache lease could change 6 months down the road to cheaper or even more. The bolt has a lot of hidden reasons for the lease being cheaper. Some other vehicles will also. No one is the same.
The mache is brand new from the ground up and not sharing platforms like the ID4 is to help lower cost. The initial price to develop the mache for ford is tremendous. But anytime you develop something with new tech from the ground up it takes time to recover some of the cost.

Simply put the PlayStation 5 gaming system is selling for negative profit. The money will be made up later on the end and in other ways. All vehicles are not the same.
 

AndyS_OSU

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You leased a Bolt for $425/month and some unknown amount down. I leased a Bolt Premium with the DC fast charging option for $275/month with $0 down. Does this make you an idiot who can't car shop? No. Of course not. The reason I got a much "better" deal is that when you leased the Bolt the MSRP bore some resemblance to reality whereas when I leased the Bolt its MSRP was a fiction. Notationally it had an MSRP of $43-$44K but GM put something like $12K of discounts and incentives on the hood, which essentially means it reduced the MSRP by that much.

Ford is definitely not putting cash on the hood of the MME at the moment. Yes the MSRP will definitely be reduced (actually or effectively) when the credits run out, and yes something will likely happen a few years into its model life cycle as supply exceeds demand. However, that will be then and this is now. In the "now" there isn't going to be a reduction in MSRP or cash incentives on a car that Ford can sell without lowering MSRP or giving incentives. Timing is everything, and there is a price to be paid for getting a hot new model.

Basically you're defining "hot garbage" financing as financing on a "hot car" but these are not the same thing.
I’m not sure why you’re so combative but whatever. I leased the BoltEV with $0 down, $424 a month after TX sales tax in the first model year it was available. I leased the BMW i3 $0 down, $409/mo after TX sales tax in the first year it was available.

I’ve been leasing for a long time homie. You don’t need to explain it to me.
 
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AndyS_OSU

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all vehicles come in different. Some don't sell quickly some do. The mache lease could change 6 months down the road to cheaper or even more. The bolt has a lot of hidden reasons for the lease being cheaper. Some other vehicles will also. No one is the same.
The mache is brand new from the ground up and not sharing platforms like the ID4 is to help lower cost. The initial price to develop the mache for ford is tremendous. But anytime you develop something with new tech from the ground up it takes time to recover some of the cost.

Simply put the PlayStation 5 gaming system is selling for negative profit. The money will be made up later on the end and in other ways. All vehicles are not the same.
I understand all that. In the end it’s just a decision Ford makes. I leased the i3 and the BoltEV in their first model year of availability. They passed the tax credits on to consumer for their reasons. And Ford is not passing them on for whatever reason they want. It’s just disappointing.
 

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There are no incentives here in TX. So with that said, here a MME on the options payment would be $757/mo AFTER factoring in the $7500 federal tax credit. That’s $325 per month more expensive than my BoltEV lease. Over 36mos that is $11700 difference for a car that only costs $4000 more.
DFW is showing a $1,000 incentive on Options financing, expiring 1/4/21. Don't know yet what incentives will replace that in January. Also don't forget to drop price per X-plan (of you are using it).

You might qualify for an additional incentive, such as for First Responders.

As others pointed out, price will still be higher than Bolt EV because it's not a Bolt EV.
 

AndyS_OSU

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DFW is showing a $1,000 incentive on Options financing, expiring 1/4/21. Don't know yet what incentives will replace that in January. Also don't forget to drop price per X-plan (of you are using it).

You might qualify for an additional incentive, such as for First Responders.

As others pointed out, price will still be higher than Bolt EV because it's not a Bolt EV.
I understand it’s not a BoltEV. I was prepared to pay more for the MachE. But again, cost of Options is still $11000 difference AFTER the tax credit is figured in. Ford can do whatever they want but it’s a stretch to justify that to those of us who have been in the EV trenches for a long time.
 
 




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